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Bitcoin Back Above $ 48,000, Expect Consolidation

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Bitcoin is back above $ 48,000 as buyers responded to intraday oversold signals. The world’s largest cryptocurrency has risen by around 9% over the past week, compared to a 7% increase in ether and a 30% increase in Cardano’s ADA. On Wednesday, the rebound in cryptocurrencies occurred alongside the gains in stocks.

Despite lower trading volume, analysts expect cryptocurrencies to consolidate near highs before buyers return for the next step.

EToro, a multi-asset brokerage, released its second quarter results on Wednesday, reporting $ 362 million in trading commissions, a 125% year-over-year increase. Yoni Assia, co-founder and CEO of eToro, told CoinDesk that traders have diversified into cryptos and stocks this year.

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The platform’s retail clients never really left the market during the price correction a few months ago, Assia said. “The majority held on and continued to hold / add cryptos,” he said.

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Bearish bitcoin bets

Hedge funds and other large traders continued to pile up in bearish bitcoin bets over the past week. The short position count rose 6,000 since July 20 to a three-month high. But the data doesn’t necessarily indicate that traders are betting on outright price cuts.

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The spike in short bets for leveraged funds could come from a return to the so-called carry trade, which involves buying the cryptocurrency in the cash market against a short position in the futures market.

This means that bitcoin market makers can be short on the Chicago Mercantile Exchange (CME) and hedged on native exchanges, reports Omkar Godbole from CoinDesk.

Half-hearted transaction volume

The average real seven-day BTC transaction volume is still around $ 5 billion, less than half of what the market saw the last time bitcoin was at $ 50,000, analysts wrote on Tuesday. ‘Arcane Research in a report.

If the trade volume continues to be relatively stable and bitcoin prices rise, the market could be depleted and the recovery will not be sustainable, analysts said.

Cardano vs. Ether

ADA is pulling out of an all-time high of around $ 3 and could find lower support between $ 2.40 and $ 2.60. The cryptocurrency remains in breakout mode after successfully maintaining the 200-day moving average in July.

Some analysts see Cardano, Solana, Terra, and others as direct competitors to Ethereum.

“These blockchains are nicknamed ‘layer 1’ because they provide two main functionalities – regulating on-chain financial activity and launching decentralized applications”, digital asset manager 21Share wrote in a newsletter Tuesday.

“We believe that this rise of layer 1 [cryptos] outside Ethereum is primarily motivated and excited by retail investors, as institutional grade investment products on these underlying assets are only available in our product line, with the exception of Luna, which no issuer is offering at this time, ”21Shares wrote.

ADA also erupted against ETH on August 17. The ADA / ETH ratio looks overbought, but will likely maintain support given the renewed bullish momentum in the ADA.

DeFi stablecoin lending rates rise

Stable loan rates in the decentralized finance The (DeFi) market is advancing, according to crypto data analysis firm Skew.

The increase could be short-term but deserves to be watched closely, said Dan Weiskopf, co-portfolio manager of the Amplify Transformational Data Sharing ETF at Toroso Asset Management.

“If the doubling of the yield from the 3% to 4% range continues, there could be a problem in the Promised Land; nothing is free and being paid dearly for something stable could be a sign of something to come, ”Weiskopf wrote to CoinDesk.

“This increase is also curious after the lull in trading activity in July, so we will be watching volatility,” Weiskopf noted.

Altcoin balance sheet

  • Launch of Pyth to bring market data from quantitative companies to Solana: Pyth Network – a key trading data pipeline to serve DeFi projects on the Solana blockchain – go live Thursday. Known as an “oracle” in crypto jargon, the data distributor will shortly begin pumping price quotes for crypto assets, forex markets, futures and stocks in nodes supporting Solana. There, developers can use it to create DeFi tools like loan projects.

  • Osprey prepares the SOL fund: Osprey Fund prepared a private SOL fund for high net worth investors, signaling growing institutional interest in the burgeoning native token of the Solana network. The fund, called Osprey Solana Trust, was registered with U.S. securities regulators on Tuesday. It has had no sales at the time of publication and is only open to accredited investors, meaning retail traders are excluded at this time. That could change, however. Osprey is “seeking approval” for his Solana Trust to trade in the same OTC market as his Bitcoin Trust, according to documents reviewed by CoinDesk. The trust appears to be the first SOL private investment vehicle in the United States

  • Budweiser buys the Beer.eth domain name for 30 ETH: Budweiser United States amended his Twitter profile photo Tuesday to that of a rocket designed by NFT artist Tom Sachs. Crypto watchers say the brewing company also bought the Beer.eth domain name for 30 ethers, or around $ 95,000. “Budweiser is taking its first steps into the NFT universe,” an Anheuser-Busch InBev spokesperson told CoinDesk via email. “We are thrilled to support Tom Sachs and his Rocket Factory project and join this amazing community. A link to the DNS (Domain Name System) address on the NFT OpenSea Marketplace shows that the rocket displayed on Budweiser’s Twitter profile was purchased for 8 ETH ($ 25,000).

  • Facebook is considering supporting NFT in the Novi digital wallet: Facebook is “definitely think about“using its Novi digital wallet to support non-fungible tokens,” said David Marcus, the company’s chief financial officer. Facebook is well positioned to explore support for NFTs through its new digital wallet, although ‘It’s too early to talk about specific plans, Marcus said in an interview with Bloomberg on Tuesday.

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Other markets

Notable 9:00 p.m. UTC (4:00 p.m. ET) winners:

piece of money (FIL) + 3.62%

peas (DOT) + 3.08%

the graphic (GRT) +1.58%

Notable losers:

dogecoin (DOGE) -1.87%

gimbal (ADA) -1.77%

algorande (ALGO) -0.75%

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